USD/JPY moves decisively above the 110.97 peak, targeting the 112.40 2019 high – Credit Suisse

USD/JPY looks to be making a decisive break above 110.97, with a close above here sharply increasing the risk of a major base. Next key resistance is at 111.93/98, then 112.23/40, analysts at Credit Suisse appraise.

Support at 110.63 now ideally holds

“USD/JPY has surged beyond the prior 110.97 high for the year after. We stay bullish and look for a move to long-term and more important resistance, starting at 111.93 and stretching up to the 112.40 high of 2019.” 

“Whilst we would expect a cap in the 112.40 vicinity at first, we are biased to a break higher in due course, which would then see a much more significant base established to mark a more important turn higher and a move to 114.00 next.”

“Near term support moves to 111.01/110.93, which now ideally holds to maintain the breakout. Thereafter, next support stays at the aforementioned 13-day exponential average at 110.63, which we look to hold if reached.”